Question

The following information is available from Bromfield Co.’s accounting records for the year ended December 31, 2013 (amounts in millions):

Cash dividends declared and paid $ 340
Interest and taxes paid 105
Collections from customers 1,339
Payment of long-term debt 216
Purchase of land and buildings 166
Cash paid to suppliers and employees 793
Issuance of preferred stock 314
Proceeds from the sale of equipment 43


Calculate the net cash provided (used) by operating activities for Bromfield Co. for the year ended December 31, 2013.

Answer 1

The net cash provided (used) by operating activities for Bromfield Co. for the year ended December 31, 2013 is $441

Step-by-step explanation:

The computation of the net cash provided (used) by operating activities is shown below:

Cash flow from Operating activities

Collections from customers $1,339

Less: Cash paid to suppliers and employees -$793

Less: Interest and taxes paid -$105

Net Cash flow from Operating activities $441

All other information is related to the investing activity and the financing activity. Hence, ignored it